The Basic Difference Between Macroeconomics and Microeconomics Is That

question 180

Multiple Choice

The basic difference between macroeconomics and microeconomics is that

• A) macroeconomics looks at how people make choices, and microeconomics looks at why they make those choices.
• B) macroeconomics is concerned with economic policy, and microeconomics is concerned with economic theory.
• C) macroeconomics focuses on the aggregate economy, and microeconomics focuses on small components of that economy.
• D) macroeconomics is associated with the fallacy of composition, and microeconomics has little to do with the fallacy of composition.

---

Definitions:

Financial Policy

Guidelines or a framework set by a company to control and manage its financial operations, including investment decisions and debt management.

Equity Beta

A measurement of the volatility of a stock or equity in relation to the overall market, reflecting the systematic risk that cannot be diversified away.

Capital Structure

The mixture of debt and equity financing a company uses to fund its operations and growth.

Expected EPS

Estimated Earnings Per Share, forecasting a company's profitability on a per share basis.